JACKSON, Miss., Dec. 21, 2012 /PRNewswire/ -- EastGroup Properties (NYSE: EGP) today announced the acquisition of five multi-tenant warehouse/distribution buildings totaling 722,000 square feet in Dallas, Texas. The buildings are currently 95% leased to 15 customers and are projected to generate an annualized 6.3% cash yield. The buildings are located in the northwest submarket of the Dallas metropolitan area within Valwood Industrial Park. The Company also purchased 4.1 acres of adjacent land for future development. The total investment, including first year capital improvements and lease-up costs, is $41,550,000.
David H. Hoster II, President and CEO, stated, "Valwood Distribution Center is consistent with our focus on high quality business distribution assets, clustered together in land constrained submarkets, near major transportation features. Furthermore, it expands our coverage of the Interstate 35 corridor, and complements our existing product. This acquisition increases EastGroup's ownership to 2.1 million square feet in the Dallas market."
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's strategy for growth is based on its property portfolio orientation toward premier distribution facilities clustered near major transportation features. EastGroup's portfolio currently includes 32 million square feet.Certain statements in this release are forward-looking and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties; and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties, the risks associated with the development of real property, and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements.
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